Revenue accelerated 53.7% YoY to $285.0M in 2026Q2, but gross margin fell to 30.3% and operating income swung to a -$33.2M loss, reflecting margin compression and cost overruns.
CECO Environmental Corp. (CECO) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 911.95M | 774.38M | 557.93M | 544.85M | 422.63M | 324.14M | 316.01M | 341.87M | 337.34M | 345.05M | 417.01M | 370.08M | 263.22M | 197.32M | 135.05M | 139.19M | 140.6M | 138.99M | 217.89M | 235.95M | 135.36M | 81.52M | 69.37M | 68.97M | 78.88M | 90.99M | 89.82M | 23.86M | 26.38M | 14.53M | 9.85M |
| Revenue Growth % | 38.98% | 38.79% | 2.4% | 28.92% | 30.38% | 2.57% | -7.56% | 1.34% | -2.23% | -17.26% | 12.68% | 40.6% | 33.4% | 46.1% | -2.97% | -1% | 1.16% | -36.21% | -7.66% | 74.32% | 66.04% | 17.52% | 0.58% | -12.57% | -13.32% | 1.31% | 276.4% | -9.55% | 81.55% | 47.56% | 16.74% |
| Cost of Goods Sold | 614.14M | 521.32M | 361.79M | 373.83M | 294.4M | 223.22M | 210.88M | 227.77M | 225.8M | 231.86M | 282.15M | 258.51M | 178.39M | 135.76M | 92.61M | 101.02M | 107.95M | 108.04M | 174.5M | 195.55M | 111.26M | 64.52M | 56.27M | 55.15M | 62.98M | 72.46M | 71.72M | 15.47M | 17.95M | 8.12M | 5.19M |
| COGS % of Revenue | - | 67.32% | 64.84% | 68.61% | 69.66% | 68.86% | 66.73% | 66.62% | 66.94% | 67.2% | 67.66% | 69.85% | 67.77% | 68.8% | 68.57% | 72.58% | 76.78% | 77.74% | 80.09% | 82.88% | 82.2% | 79.15% | 81.12% | 79.97% | 79.85% | 79.63% | 79.85% | 64.85% | 68.05% | 55.85% | 52.68% |
| Gross Profit | 297.81M | 253.06M | 196.15M | 171.02M | 128.22M | 100.92M | 105.13M | 114.1M | 111.54M | 113.19M | 134.86M | 111.56M | 84.82M | 61.55M | 42.44M | 38.17M | 32.65M | 30.94M | 43.39M | 40.41M | 24.1M | 17M | 13.1M | 13.82M | 15.89M | 18.53M | 18.1M | 8.39M | 8.43M | 6.41M | 4.66M |
| Gross Margin % | 32.66% | 32.68% | 35.16% | 31.39% | 30.34% | 31.14% | 33.27% | 33.38% | 33.06% | 32.8% | 32.34% | 30.15% | 32.23% | 31.2% | 31.43% | 27.42% | 23.22% | 22.26% | 19.91% | 17.12% | 17.8% | 20.85% | 18.88% | 20.03% | 20.15% | 20.37% | 20.15% | 35.15% | 31.95% | 44.15% | 47.32% |
| Gross Profit Growth % | - | 29.02% | 14.7% | 33.37% | 27.05% | -4% | -7.86% | 2.3% | -1.46% | -16.06% | 20.88% | 31.52% | 37.8% | 45.03% | 11.2% | 16.89% | 5.53% | -28.69% | 7.39% | 67.67% | 41.75% | 29.82% | -5.23% | -13.06% | -14.25% | 2.4% | 115.77% | -0.5% | 31.4% | 37.66% | 25.94% |
| Operating Expenses | 287.4M | 201.35M | 160.74M | 136.45M | 106.06M | 91.06M | 91.78M | 96.11M | 97.14M | 96.11M | 101.97M | 94.9M | 61.14M | 47.36M | 25.76M | 25.8M | 27.62M | 29.66M | 35.2M | 27.77M | 18.05M | 13.47M | 11.91M | 11.98M | 13.69M | 15.53M | 16.09M | 7.95M | 7.29M | 6.44M | 3.94M |
| OpEx % of Revenue | - | 26% | 28.81% | 25.04% | 25.1% | 28.09% | 29.04% | 28.11% | 28.8% | 27.85% | 24.45% | 25.64% | 23.23% | 24% | 19.07% | 18.54% | 19.64% | 21.34% | 16.15% | 11.77% | 13.34% | 16.53% | 17.17% | 17.38% | 17.36% | 17.06% | 17.91% | 33.3% | 27.64% | 44.31% | 40.03% |
| Selling, General & Admin | 213.59M | 200.73M | 146.7M | 122.94M | 93.47M | 81.8M | 76.93M | 85.98M | 87.46M | 88.97M | 81.74M | 69.29M | 51.44M | 37.1M | 25.43M | 25.36M | 27.51M | 28.9M | 33.65M | 26.15M | 16.82M | 12.31M | 10.66M | 10.4M | 11.9M | 13.21M | 13.93M | 7.22M | 6.67M | 6.05M | 3.52M |
| SG&A % of Revenue | - | 25.92% | 26.29% | 22.56% | 22.12% | 25.24% | 24.34% | 25.15% | 25.93% | 25.79% | 19.6% | 18.72% | 19.54% | 18.8% | 18.83% | 18.22% | 19.57% | 20.8% | 15.44% | 11.08% | 12.43% | 15.1% | 15.36% | 15.08% | 15.09% | 14.51% | 15.51% | 30.24% | 25.3% | 41.67% | 35.79% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 619K | 14.05M | 13.5M | 12.59M | 9.27M | 14.86M | 10.13M | -365K | 106K | 310K | -2.08M | -2.31M | 982K | -152K | 441K | 105K | 759K | 1.55M | 1.62M | 1.23M | 1.17M | 1.25M | 1.58M | 1.79M | 2.32M | 2.15M | 729.33K | 617.96K | 384.66K | 416.99K |
| Operating Income | 10.41M | 51.71M | 35.4M | 34.57M | 22.16M | 9.86M | 13.35M | 17.99M | 10M | 8.02M | -25.56M | 5.38M | 22.41M | 6.97M | 16.68M | 12.37M | 5.04M | -15.83M | 8.2M | 12.63M | 6.05M | 3.52M | 1.19M | 1.83M | 2.2M | 3M | 2.01M | 441.57K | 1.14M | -24.25K | 718.24K |
| Operating Margin % | 1.14% | 6.68% | 6.35% | 6.34% | 5.24% | 3.04% | 4.22% | 5.26% | 2.96% | 2.33% | -6.13% | 1.45% | 8.52% | 3.53% | 12.35% | 8.89% | 3.58% | -11.39% | 3.76% | 5.35% | 4.47% | 4.32% | 1.71% | 2.66% | 2.79% | 3.3% | 2.24% | 1.85% | 4.31% | -0.17% | 7.29% |
| Operating Income Growth % | - | 46.07% | 2.41% | 55.99% | 124.83% | -26.14% | -25.81% | 79.86% | 24.65% | 131.39% | -574.87% | -75.98% | 221.47% | -58.21% | 34.89% | 145.59% | 131.81% | -293.17% | -35.14% | 108.93% | 71.55% | 197.47% | -35.39% | -16.67% | -26.76% | 49.52% | 355.14% | -61.16% | 4787.09% | -103.38% | 1170.39% |
| EBITDA | 27.45M | 76.59M | 49.93M | 47.08M | 32.77M | 19.71M | 23.27M | 28.6M | 23.1M | 24.11M | -6.66M | 31M | 32.56M | 13.73M | 17.01M | 13.77M | 6.79M | -15.07M | 11.37M | 14.26M | 7.28M | 4.69M | 2.44M | 3.42M | 3.99M | 5.33M | 4.16M | 1.17M | 1.75M | 360.41K | 1.14M |
| EBITDA Margin % | 3.01% | 9.89% | 8.95% | 8.64% | 7.76% | 6.08% | 7.36% | 8.37% | 6.85% | 6.99% | -1.6% | 8.38% | 12.37% | 6.96% | 12.6% | 9.89% | 4.83% | -10.84% | 5.22% | 6.04% | 5.38% | 5.76% | 3.52% | 4.95% | 5.06% | 5.85% | 4.64% | 4.91% | 6.65% | 2.48% | 11.53% |
| EBITDA Growth % | -76.35% | 53.42% | 6.05% | 43.63% | 66.29% | -15.29% | -18.64% | 23.79% | -4.19% | 462.1% | -121.48% | -4.82% | 137.12% | -19.28% | 23.59% | 102.63% | 145.08% | -232.54% | -20.24% | 95.95% | 55.07% | 92.37% | -28.58% | -14.41% | -25.07% | 27.87% | 255.65% | -33.27% | 386.89% | -68.25% | 133.49% |
| D&A (Non-Cash Add-back) | 19.34M | 24.88M | 14.52M | 12.51M | 10.61M | 9.85M | 9.92M | 10.61M | 13.1M | 16.09M | 18.9M | 25.61M | 10.15M | 6.76M | 331K | 1.4M | 1.76M | 759K | 3.18M | 1.62M | 1.23M | 1.17M | 1.25M | 1.58M | 1.79M | 2.32M | 2.15M | 729.33K | 617.96K | 384.66K | 416.99K |
| EBIT | -1.63M | 103.76M | 30.71M | 34.94M | 27.71M | 12.04M | 15.38M | 18.74M | 9.64M | 10.48M | -25.25M | 2.87M | 23.83M | 7.95M | 16.53M | 12.82M | 4.9M | -16.59M | 10.12M | 12.63M | 6.05M | 3.52M | 1.19M | 1.36M | 2.21M | 3.01M | 2.05M | 305.21K | 1.88M | -24.25K | 718.24K |
| Net Interest Income | -23.64M | -20.91M | -13.02M | -13.42M | -5.42M | -2.95M | -3.54M | -5.4M | -7.14M | -6.72M | -7.71M | -5.96M | -3.14M | -1.5M | -1.17M | -1.14M | -1.23M | -1.32M | -1.48M | -1.98M | -2M | -2.41M | -2.56M | -2.27M | -2.74M | -3.54M | -3.81M | 0 | -192.75K | 0 | -154.84K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 67.81K | 0 | 0 |
| Interest Expense | 23.64M | 20.91M | 13.02M | 13.42M | 5.42M | 2.95M | 3.54M | 5.4M | 7.14M | 6.72M | 7.71M | 5.96M | 3.14M | 1.5M | 1.17M | 1.14M | 1.23M | 1.32M | 1.48M | 1.98M | 2M | 2.41M | 2.56M | 2.27M | 2.74M | 3.54M | 3.81M | 158.43K | 260.57K | 22.32K | 154.84K |
| Other Income/Expense | -30.94M | 31.13M | -17.71M | -13.04M | 1.53M | -5.18M | -1.5M | -4.65M | -7.5M | -6.62M | -7.4M | -8.04M | -5.45M | -517K | -1.32M | -685K | -1.36M | -19.19M | -519K | -1.97M | -1.19M | -3.31M | -2.36M | -2.4M | -2.85M | -3.15M | -3.04M | -101.58K | -187.87K | -46.38K | -72.07K |
| Pretax Income | -20.53M | 82.84M | 17.69M | 21.52M | 23.69M | 4.67M | 11.84M | 13.34M | 2.5M | 1.41M | -32.96M | -2.66M | 16.96M | 6.46M | 15.36M | 11.72M | 3.68M | -17.91M | 7.64M | 10.67M | 4.86M | 212K | -1.18M | -228K | -339K | -141K | -1.03M | 295.71K | 944.05K | -70.63K | 646.17K |
| Pretax Margin % | -2.25% | 10.7% | 3.17% | 3.95% | 5.61% | 1.44% | 3.75% | 3.9% | 0.74% | 0.41% | -7.9% | -0.72% | 6.44% | 3.27% | 11.38% | 8.42% | 2.61% | -12.89% | 3.5% | 4.52% | 3.59% | 0.26% | -1.7% | -0.33% | -0.43% | -0.15% | -1.15% | 1.24% | 3.58% | -0.49% | 6.56% |
| Income Tax | 2.65M | 29.74M | 3.27M | 7.02M | 5.43M | 2.69M | 3.67M | -4.36M | 9.62M | 4.44M | 5.29M | 3.07M | 3.89M | -102K | 4.51M | 3.41M | 1.37M | -3.14M | 2.63M | 4.36M | 1.77M | 647K | -248K | -62K | -216K | 131K | -303.75K | 151.36K | 373.32K | 7.2K | 205.79K |
| Effective Tax Rate % | -12.91% | 35.9% | 18.48% | 32.63% | 22.91% | 57.57% | 31% | -32.7% | 385.18% | 314.98% | -16.05% | -115.4% | 22.91% | -1.58% | 29.38% | 29.1% | 37.3% | 17.55% | 34.39% | 40.89% | 36.36% | 305.19% | 21.09% | 27.19% | 63.72% | -92.91% | 29.42% | 51.19% | 39.54% | -10.19% | 31.85% |
| Net Income | -27.16M | 50.05M | 12.96M | 12.91M | 17.42M | 1.43M | 8.21M | 17.71M | -7.12M | -3.03M | -38.22M | -5.6M | 13.08M | 6.56M | 10.85M | 8.27M | 2.1M | -15.03M | 5.01M | 6.3M | 3.09M | -435K | -928K | -166K | -123K | -264K | -689.92K | -366.16K | 532.93K | -53.77K | 301.08K |
| Net Margin % | -2.98% | 6.46% | 2.32% | 2.37% | 4.12% | 0.44% | 2.6% | 5.18% | -2.11% | -0.88% | -9.16% | -1.51% | 4.97% | 3.32% | 8.03% | 5.94% | 1.5% | -10.82% | 2.3% | 2.67% | 2.29% | -0.53% | -1.34% | -0.24% | -0.16% | -0.29% | -0.77% | -1.53% | 2.02% | -0.37% | 3.06% |
| Net Income Growth % | -151.77% | 286.29% | 0.36% | -25.87% | 1121.39% | -82.63% | -53.63% | 348.66% | -135.09% | 92.07% | -582.22% | -142.84% | 99.44% | -39.57% | 31.17% | 292.97% | 114% | -400.04% | -20.54% | 103.78% | 811.26% | 53.13% | -459.04% | -34.96% | 53.41% | 61.73% | -88.42% | -168.71% | 1091.05% | -117.86% | 717.77% |
| Net Income (Continuing) | -23.18M | 53.11M | 14.42M | 14.5M | 18.26M | 1.98M | 8.17M | 17.71M | -7.12M | -3.03M | -38.25M | -5.73M | 13.08M | 6.56M | 10.85M | 8.27M | 2.31M | -14.77M | 5.68M | 6.3M | 3.09M | -435K | -928K | -667K | -306K | -264K | -690K | 99.01K | 945.48K | -53.77K | 301.08K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5.28M | 5.65M | 4.2M | 4.85M | 4.92M | 1.4M | 953K | 0 | 0 | 0 | 0 | 5.87M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 59.92K | 98.54K | 149.94K | 248.29K | 964.2K |
| EPS (Diluted) | -0.63 | 1.37 | 0.36 | 0.37 | 0.50 | 0.04 | 0.23 | 0.50 | -0.21 | -0.09 | -1.12 | -0.19 | 0.50 | 0.32 | 0.65 | 0.51 | 0.15 | -1.06 | 0.30 | 0.45 | 0.24 | -0.04 | -0.09 | -0.02 | -0.01 | -0.03 | -0.08 | -0.04 | 0.06 | -0.01 | 0.04 |
| EPS Growth % | -141.96% | 280.56% | -2.7% | -26% | 1146.88% | -82.57% | -54% | 338.1% | -138.91% | 92.15% | -489.47% | -138% | 56.25% | -50.77% | 27.45% | 240% | 114.15% | -453.33% | -33.33% | 87.5% | 651.72% | 53.18% | -452.98% | -31.25% | 61.68% | 59.81% | -111.45% | -165.5% | - | -117% | - |
| EPS (Basic) | - | 1.42 | 0.37 | 0.37 | 0.50 | 0.04 | 0.23 | 0.51 | -0.21 | -0.09 | -1.12 | -0.19 | 0.51 | 0.33 | 0.73 | 0.58 | 0.15 | -1.06 | 0.34 | 0.47 | 0.27 | -0.04 | -0.09 | -0.02 | -0.01 | -0.03 | -0.08 | -0.04 | 0.06 | -0.01 | 0.04 |
| Diluted Shares Outstanding | 43.31M | 36.6M | 35.69M | 35.33M | 35.01M | 35.59M | 35.52M | 35.48M | 34.71M | 34.45M | 33.98M | 28.79M | 26.2M | 20.72M | 17.25M | 17.12M | 17.1M | 14.22M | 15.41M | 14.04M | 12.89M | 9.99M | 9.99M | 9.85M | 9.58M | 7.9M | 8.3M | 9.32M | 8.65M | 7.95M | 7M |
| Basic Shares Outstanding | 43.31M | 35.33M | 34.93M | 34.67M | 34.67M | 35.35M | 35.29M | 34.99M | 33.91M | 33.66M | 33.98M | 28.79M | 25.75M | 20.12M | 14.81M | 14.39M | 14.31M | 14.22M | 14.77M | 13.46M | 11.26M | 9.99M | 9.99M | 9.85M | 9.58M | 7.9M | 8.2M | 8.25M | 8.22M | 7.55M | 7M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 45.4% | 66.14% | 22.67% | 8.8% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CECO stock.
For fiscal year 2025, CECO Environmental Corp. (CECO) reported total revenue of $774.4M. This represents a 7763.6% increase compared to $9.8M in 1996.
CECO Environmental Corp. (CECO) is profitable, generating $50.1M in net income for the fiscal year ending 2025 with a net profit margin of 6.5%.
CECO Environmental Corp. (CECO) reported an operating income of $51.7M, resulting in an operating profit margin of 6.7%. This margin reflects the operational efficiency of the business before interest and taxes.
CECO Environmental Corp. (CECO) generated $253.1M in gross profit for the year, representing a gross profit margin of 32.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
EPS miss and margin compression
Metrics are mathematically derived from official filings.
Revenue Surge Driven by Strategic Pivot
CECO's revenue jumped 53.7% YoY in 2026Q2 to $285.0M, per the latest quarterly report, marking a sharp acceleration from the 21.5% growth in the prior quarter and suggesting successful penetration into high-growth end markets.
The 53.7% YoY growth in 2026Q2 is a significant acceleration from the 21.5% in 2026Q1 and the 35.4% in 2025Q4, indicating that the company is capturing substantial demand, likely from semiconductor and EV-related capital projects. This growth appears to be driven by volume rather than pricing, as gross margin contracted to 30.3% from 35.1% in the prior quarter. The sustainability of this growth will depend on the company's ability to convert its record backlog into revenue without further margin erosion.
Gross Margin Volatility Raises Concerns
Gross margin fell to 30.3% in 2026Q2 from 35.1% in 2026Q1, as reported in the income statement, marking the lowest level in the past ten quarters and suggesting potential cost overruns or mix shift toward lower-margin projects.
The 30.3% gross margin in 2026Q2 is a notable decline from the 36.2% peak in 2025Q2 and the 35.7% average in 2024. This could indicate that the rapid revenue growth is coming from projects with higher material costs or that the company is absorbing input cost inflation without fully passing it through. If this margin compression persists, it could signal a structural shift in the business mix, warranting close monitoring of future quarters.
Operating Leverage Elusive Amid Rapid Scaling
Despite a 53.7% revenue surge in 2026Q2, operating income swung to a -$33.2M loss, per the latest financials, indicating that SG&A and other costs are not scaling proportionately and that operating leverage is currently negative.
The operating margin of -11.6% in 2026Q2 is a stark contrast to the 7.7% in 2026Q1 and the 9.7% in 2025Q2. While SG&A increased by about 24.5% sequentially, the gross profit only rose by 14.7%, and the operating loss suggests that there may be one-time charges or inefficiencies in project execution. The company's ability to achieve operating leverage will be critical as it continues to scale, but the current data suggests that cost controls are not keeping pace with revenue growth.
EPS Miss Clouds Earnings Quality
CECO reported a diluted EPS of -$0.80 in 2026Q2 versus $0.08 in the prior quarter, according to the income statement, a dramatic swing that appears to be driven by a significant one-time charge or impairment, given the raised guidance.
The net loss of -$34.8M in 2026Q2 is far larger than the operating loss of -$33.2M, suggesting additional below-the-line items. The EPS miss of -$0.80 versus the $0.33 estimate, despite record orders and raised guidance, indicates that the market was caught off guard by this non-operating drag. Investors should scrutinize the nature of this charge—whether it is a one-time impairment or a recurring cost—as it will determine the quality of future earnings.
SG&A Escalation Outpaces Revenue Growth
SG&A expenses rose to $63.9M in 2026Q2, up 24.5% sequentially, while revenue grew only 32.8%, per the income statement, suggesting that overhead costs are growing faster than the top line and pressuring margins.
The SG&A-to-revenue ratio increased to 22.4% in 2026Q2 from 23.9% in 2026Q1, but the absolute dollar increase is notable. This could reflect investments in sales infrastructure to support the growth, but it also indicates that the company is not yet achieving economies of scale. If SG&A continues to grow at this pace, it will be difficult for CECO to expand operating margins even as revenue grows.
2026Q2: A Pivotal Quarter of Contradictions
The 2026Q2 quarter stands out as a major inflection point, with revenue surging 53.7% YoY but operating income collapsing to a -$33.2M loss, per the income statement, highlighting the tension between growth and profitability.
This quarter marks a clear departure from the prior trend of steady, albeit moderate, profitability. The revenue surge suggests that the company's strategic pivot into high-growth markets is gaining traction, but the simultaneous loss indicates that the cost structure is not yet aligned with this new scale. The lasting impact will depend on whether the loss is a one-time event or a sign of structural issues in project execution and cost management.
What Could Invalidate the Base Case
The dramatic EPS miss in 2026Q2, with a -$0.80 loss versus $0.33 estimate, per the income statement, raises questions about the sustainability of the growth narrative and whether margin compression is structural.
Short-sellers would likely focus on the fact that despite record revenue growth, the company posted a significant operating loss, suggesting that the cost structure is not scaling effectively. The gross margin decline to 30.3% could indicate that the company is winning low-margin projects to drive growth, which may not be sustainable. Additionally, the elevated SBC of $12.4M in 2026Q2, up from $3.6M in 2025Q4, could dilute shareholders and mask true profitability. If the EPS miss is not a one-time event, the stock could face significant downside as the market reprices the company's earnings power.